A months-long investigation into Deutsche Bank’s ties to disgraced financier Jeffrey Epstein may result in an enforcement action against the bank this month. Deutsche Bank was Epstein’s lender and held several of his accounts. The investigation, which is being conducted by the New York Department of Financial Services, is examining the bank’s decision to continue engaging with Epstein despite employee dissent.
Epstein, who was arrested last July on federal sex-trafficking charges and died in federal custody the following month, caused concerns among Deutsche Bank compliance officers in 2015 after Epstein made several transactions sending money overseas. Other employees were concerned for the bank’s reputation in continuing to conduct business with a registered sex offender—Epstein pled guilty in 2008 to soliciting prostitution from a minor in Florida. Bank executives decided to retain Epstein as a customer because his business was so profitable.